“The CHIPS and Science Act will alleviate global supply chain disruptions, just not right away.”
Imagine if all the semiconductor chips your manufacturing operation needs were produced and widely available right in your own backyard. No more worrying about shortages, long order lead times, transit times and shipping delays, or exorbitant transport costs. No more tying up capital in safety stock and excess inventory to safeguard against the next global disruption. No more losing sleep over the escalating geopolitical tensions between China and Taiwan, two leaders in chip manufacturing, that could once again shut off access to critical components.
For many U.S. manufacturing companies that have been plagued by chip scarcity over the past several years, this sounds like a dream come true. And, in theory, this utopia is precisely what the CHIPS and Science Act of 2022 is intended to create. The law aims to reshore chip manufacturing and position the U.S. as the leader in the semiconductor industry for decades to come.
But it is not going to happen overnight.
TBM’s CEO, John Ferguson explains in Industry Today why there is still supply chain strategy work to be done now by all companies to keep their production lines and operations running smoothly and profitability until they can reap the rewards from the CHIPS and Science Act.Download this Article